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J.C. Penney same-store sales miss estimates, cuts profit forecast

May 17, 2018

J.C. Penney Co Inc’sfirst-quarter sales at established stores missed analysts’ estimate on Thursday as unusually cool weather in April hurt demand for spring clothing, pushing the company to cut its full-year profit forecast.

Photo: J. C. Penney

Shares of the department store operator fell 11 percent in premarket trading after it forecast full-year adjusted earnings per share between a loss of 7 cents and profit of 13 cents.

The company had previously forecast adjusted profit to be between 5 cents and 25 cents per share.

J.C. Penney is the second retailer after Home Depot Incto blame the prolonged cold weather for a drop in same-store sales. The retailer’s same-store sales rose 0.2 percent, missing the analysts’ estimate of about 2 percent, according to Thomson Reuters I/B/E/S.

The company’s net loss narrowed to $78 million, or 25 cents per share, in the quarter ended May 5, from $187 million, or 60 cents per share, a year earlier.

Shares in Nordstrom Inc slumped 9 percent after the U.S. department store operator reported disappointing same-store sales and said it had been forced to refund some of its credit card customers after overcharging them.

J.C. Penney Co Inc cut its forecast for annual sales on Thursday while also withdrawing its outlook for full-year earnings, adding to nerves over the future of another one of America’s best known retail names.